Loyalty Promotion Drives 65% Increase in Loyalty Spending

One of our pizza-chain clients wanted to boost traffic on chronically slow winter Wednesdays. The chain offered multiple 50%-off discounts on premium menu items to all registered loyalty card members. Because this chain caters to large party sizes that often include children, it believed offering multiple promotional items that could be redeemed all on one check would be a richer, more appealing offer to its loyalty guests.

The Promotion The chain offered multiple 50%-off discounts on premium menu items to all registered loyalty card members. Because this chain caters to large party sizes that often include children, it believed offering multiple promotional items that could be redeemed all on one check would be a richer, more appealing offer to its loyalty guests.

The chain targeted registered members on four Wednesdays from mid-January through mid-February. Rewards were automatically added when the guest identified him- or herself at the POS through a loyalty card swipe on one of the four Wednesdays. Redemption of the main menu items was limited to the time between 4 p.m. and closing, with unused rewards expiring automatically at the end of the business day. The chain restricted redemption of this promotion to registered guests dining in the restaurant, and all discounts could be used together on one check.

Paytronix technology enabled this promotion by:

Identifying the members who participated

Restricting redemption of the offer at the POS to registered guests who dined during the targeted time period.

Expiring unused rewards at the end of each Wednesday

Deploying an email to communicate the offer to all loyalty members

Loading rewards onto registered loyalty cards in real time

The Results and Financial ReturnLight traffic Wednesdays transformed into heavy traffic Wednesdays. Overall, the four Wednesdays saw an 84% increase in unique loyalty guests in comparison to the previous four Wednesdays. This increased traffic triggered an overall boost in loyalty spending of more than 65% of the average spend during the four weeks prior to the promotion.

Furthermore, the promotion generated loyalty checks that, net of the discount, were 10% larger than the average of all guest checks for the same time period.

Improved Member Acquisition

As an added benefit to boosting traffic on a slow day, enrollment in the restaurant’s loyalty program tripled after the first four weeks of the promotion.

To learn more about how loyalty promotions can help your business, contact us.

Designed to identify the latest trends in restaurant gift card sales and help restaurant marketing executives compare results to others in the industry, use trends for planning inventory, and gain insight into how channel sales contribute to the growth of gift card sales programs, the Paytronix Gift Card Sales Report analyzed more than 190 restaurant brands and 550 stored value program data.